Fred Hubler’s article looks at how alternative investments are increasingly showing up everywhere, from spot crypto ETFs like BlackRock’s IBIT to talk of adding private equity or private credit to 401(k) plans. He notes that while ETFs and hybrid interval funds make alternatives more accessible, these vehicles only scratch the surface, and asks whether alternatives lose some of their appeal for stability and diversification as they become blended with public markets.
As one truly alternative option, Hubler points to private credit through trade finance. He cites World Bank estimates that small and medium-sized enterprises, or SMEs, in emerging markets provide at least 45% of jobs and 33% of GDP in those economies, with 600 million jobs needed by 2030 to support the growing global workforce, yet these businesses persistently struggle to access capital.
He explains that trade finance covers financial tools like letters of credit and inventory-backed lending that help sellers get paid and buyers receive goods across long distances and different currencies.
Net-net: trade finance is emerging as an underused way to fund the small and mid-sized businesses driving emerging-market growth.
Catch the rest of Hubler’s breakdown on Forbes: Unlocking Growth: How Trade Finance Fuels Middle Market Business.